Mumbai: The Maldives government has given a comfort letter to Indian Overseas Bank (IOB), which has $25-million exposure to GMR Group’s Male airport project, assuring safety of lenders’ funds, a top bank official said today.
The quantum of compensation, however, will be decided through an arbitration process.
The Maldives government is poised to take over the Male International Airport with GMR agreeing to meet the midnight deadline to hand over the operations after the Indian infrastructure major lost a week-long legal battle.
“The Maldivian government has sent us a comfort letter, through Axis Bank, which is the lead lender to the Male airport project, to protect our money. The quantum of compensation will be decided through an arbitration process,” the state-run Indian Overseas Bank CMD M Narendra told PTI.
07/12/12 PTI/First Post.com
